Apple has demanded incentives from the Indian Government to establish a manufacturing unit in India. According to reports, the Cupertino-based technology major has reportedly asked for incentives to build a manufacturing plant in India. The sources close to the Department of Revenue and Department of Electronics and Information Technology (DeITY) has confirmed the matter.

Commenting on the development, an official disclosed that they are doing their due diligence from quite some time. The Department of Industrial Policy and Promotion (DIPP) will write to both the departments regarding this communication for their views. Currently, the government provides benefits under Modified Special Incentive Package Scheme (MSIPS) to boost electronic manufacturing in the country.

Government provides subsidy for investments in SEZs

The main purpose of the scheme is not only to provide financial incentives to offset disability but also to attract investments in the electronics hardware segment. Moreover, the scheme also provides a subsidy for investments in Special Economic Zones. Apple manufactures its products in 6 countries, which includes Korea, Japan, and the US.

Government rejected exemption from 30 percent domestic sourcing

In May, the Finance Ministry has rejected exemption sought by Apple regarding 30 percent domestic sourcing norms. The company has set the exemption as a pre-condition for bringing in FDI to setup single-brand retail stores in the country. Apple argued that the company manufactures state-of-the-art and cutting-edge technology products for which local sourcing is not possible.

Government rejects Apple’s attempt to sell refurbished phones in India

Apple sells iPhone, iPad, MacBook Pro and other products in India by establishing partnerships with distributors such as Redington and Ingram Micro. In the meantime, the government has announced incentives to promote electronic manufacturing in India in a bid to reduce the import bill.

Meanwhile, Xiaomi had already established a manufacturing plan in Andhra Pradesh and its flagship Redmi 3S and Redmi 3S Prime are manufactured inside the facility.